Home sales, housing starts will drop this year and in 2016: CMHC

Home sales in Hamilton will decline this year and into 2016, according to a new report from the Canada Mortgage and Housing Corporation.

Housing starts for the Hamilton census metropolitan area will also decline this year and into next year, the CMHC's Spring Housing Market Outlook says.

Housing starts will drop from 2,832 units in 2014 to 2,660 units this year, the report says, before dropping to 2,600 units in 2016.

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However, this projected slowdown in housing demand won't be city-wide, says Abdul Kargbo, the CMHC's senior market analyst for the Hamilton and Brantford CMAs.

"Hamilton East, Hamilton Centre, Dundas, Waterdown and Grimsby will post stronger activity in the next two years," Kargbo said in a statement. "These areas will remain affordable relative to other areas within the Hamilton CMA such as Flamborough, Ancaster and Burlington, particularly in 2016 when mortgage rates are expected to drift higher."

Though existing home sales in Hamilton will drop this year and next, they will still be above the 10-year average, the report says.

"Relative to the Greater Toronto Area, Hamilton is still considered a more affordable housing market and will continue to attract potential home buyers from the less affordable municipalities," Kargbo said.